Sorare Secures $10 Million Funding to Achieve Profitability
Written with artificial intelligence.
Sorare, the Paris-based fantasy sports platform, has raised funding from existing investors to help it work toward profitability by 2027. The company aims to leverage a new free-to-play mode and significantly reduced licensing costs as part of its restructuring strategy.
Funding Announcement
On September 3rd, Sorare announced it secured tens of millions of euros in funding from existing investors, including Benchmark, Accel, Partech, and Kibo Ventures. Co-founders Nicolas Julia and Adrien Montfort also participated in this funding round, although specific details regarding the amount and company valuation remain undisclosed.
Revenue Growth and Strategic Changes
Sorare has reported an 85% year-on-year increase in net revenue during the first half of 2026, with over 100,000 users purchasing cards. The company aims to reach profitability by the end of 2027, which is a year later than its previous target set in November 2025. Key to this strategy is the introduction of Arcade, a free-to-play mode that allows players to collect football cards and form teams based on real match performances. This mode is expected to generate net revenue of €15 million to €20 million in 2026.
Restructuring and Cost Reductions
The recent funding comes five years after Sorare raised $680 million at a valuation of $4.3 billion during the NFT boom. However, the company has since faced challenges in managing high licensing costs, having reduced its annual costs fivefold by renegotiating contracts worth over €500 million. Additionally, Sorare has centralized its operations in Paris and closed its New York office to streamline costs.
Potential Legal Challenges
Despite its restructuring efforts, Sorare is facing legal issues. The UK Gambling Commission is prosecuting the company for allegedly offering unlicensed gambling services, with a trial set for June 7, 2027. Furthermore, around £10 million paid to the Premier League is currently frozen due to an investigation by the National Crime Agency.